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Accounting Engagement Letter Template for England and Wales

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Key Requirements PROMPT example:

Accounting Engagement Letter

"I need an Accounting Engagement Letter for my UK-based tech startup that covers both monthly bookkeeping services and annual tax preparation, with a specific focus on R&D tax credit consultation, starting from March 2025."

Document background
The Accounting Engagement Letter serves as the foundational document for professional accounting services in England and Wales. It is required by professional standards and best practice to clearly define the scope of work, responsibilities, and terms of service. This document is essential for protecting both the accounting firm and the client, ensuring clear communication of expectations, and complying with regulatory requirements. It should be updated or renewed when there are significant changes in the scope of services or circumstances of engagement.
Suggested Sections

1. Professional Details: Name, address, and professional credentials of the accounting firm

2. Client Information: Full legal name and address of the client entity

3. Scope of Services: Detailed description of accounting services to be provided, including specific deliverables

4. Professional Fees: Fee structure, payment terms, and billing arrangements

5. Client Responsibilities: Outline of client's obligations regarding information provision and cooperation

6. Confidentiality: Terms regarding handling of confidential information and professional secrecy

7. Professional Standards: Reference to applicable professional standards, regulations and ethical requirements

Optional Sections

1. Additional Services: Description of potential additional services outside the core scope, included when offering expandable engagement scope

2. Third Party Access: Terms for sharing information with third parties, included when engagement involves external stakeholders

3. Electronic Communications: Specific terms regarding electronic communication and data security, included when significant digital interaction expected

4. Conflict Resolution: Specific dispute resolution procedures, included for complex or high-value engagements

Suggested Schedules

1. Schedule A - Detailed Service Description: Comprehensive breakdown of specific services to be provided including methodology and timelines

2. Schedule B - Fee Schedule: Detailed breakdown of fees, charging structure, and payment terms

3. Schedule C - Standard Terms and Conditions: Firm's standard terms and conditions including liability limitations

4. Schedule D - Data Processing Agreement: Detailed terms for handling personal data in compliance with GDPR requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary UK legislation governing company operations, including statutory requirements for accounting and reporting

Financial Services and Markets Act 2000: Regulatory framework for financial services in the UK, including provisions affecting accountancy services

Data Protection Act 2018 and UK GDPR: Legislation governing the processing and protection of personal data in the UK post-Brexit

Money Laundering Regulations 2017: Regulations requiring accountants to implement specific procedures to prevent money laundering and terrorist financing

ICAEW Code of Ethics: Professional ethical guidelines established by the Institute of Chartered Accountants in England and Wales

FRC Ethical Standard: Financial Reporting Council's standards setting out fundamental ethical principles for auditors and accountants

International Standards on Auditing (UK): UK-specific standards for conducting audits, adapted from international standards

ISQM 1: International Standard on Quality Management setting requirements for firm's quality management systems

Financial Reporting Standards (FRS): Standards that specify how companies must prepare and present their financial statements

ICAEW Practice Guidelines: Detailed professional guidance for chartered accountants practicing in England and Wales

ACCA Requirements: Professional standards and requirements set by the Association of Chartered Certified Accountants

Practice Assurance Standards: Quality assurance framework for accounting practices ensuring consistent service delivery

Unfair Contract Terms Act 1977: Legislation governing limitation of liability clauses and other contractual terms in professional engagements

Finance Acts: Annual legislation implementing the government's tax policies and requirements

HMRC Guidelines: Her Majesty's Revenue and Customs requirements and guidance for tax-related accounting matters

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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